The Ghana Revenue Authority (GRA) has raised concerns over persistent Value Added Tax (VAT) compliance challenges, saying several businesses collect VAT from customers but fail to remit the funds to the government.

Commissioner-General of the GRA, Anthony Kwasi Sarpong, said the situation remained a significant gap in Ghana’s efforts to improve domestic revenue mobilisation.

Speaking at the 14th Annual International Tax Conference 2026, Mr Sarpong said the Authority’s assessment had revealed major weaknesses in VAT registration and compliance among businesses.

He said only about four out of every 10 businesses were properly charging and accounting for VAT, while the rest either remained unregistered or failed to remit VAT collected from customers.

“So today, we are saying that four out of every business in Ghana correctly charges VAT. The remaining six, they do not register. Or when they register, they collect their money and it doesn’t end up with government,” he said.

Mr Sarpong said the GRA was therefore combining technology with stronger enforcement measures to improve VAT compliance and collection.

He said the implementation of the Fiscal Electronic Devices Act would require most businesses to conduct transactions through government-approved electronic devices, giving the Authority greater visibility over economic activity in real time.

According to him, the technology would enable the GRA to monitor transactions as they occur and reconcile the VAT amounts due at the end of each month.

However, Mr Sarpong cautioned that technology alone would not resolve the compliance challenges, saying the Authority’s pilot programme had already exposed attempts by some businesses to circumvent the system.

“The pilot we are undertaking is telling us that when our officers are on the field, the machine is working. As soon as we leave the shop, the machine stops working,” he said.

He added that the GRA would combine the deployment of technology with stronger compliance measures to ensure businesses accurately account for VAT and improve revenue collection.

“We are combining this with strong compliance to ensure that compliance and the use of technology will help us to improve VAT on the ground,” he said.